When a company has a counterbalancing error, the company should
A) not take any action if the financial statements are no longer being presented on a comparative basis
B) restate the financial statements to show the correct balances if the financial statements are presented on a comparative basis
C) discuss the error in the notes to the financial statement and restate the financial statements
D) a and b

Question

Quizplus · Accepted Answer

If financial statements are not presented on a comparative basis, no action is needed. If they are presented comparatively, restating them to correct the balances is necessary.

When a Company Has a Counterbalancing Error, the Company Should